TERYL RESOURCES ANALYSIS
EXPLORING FOR GOLD IN ALASKA AND BRITISH COLUMBIA - TERYL STRIKES ANOTHER VERY IMPRESSIVE DRILL HOLE
Business Summary
With interests in four gold properties, Teryl Resources is one of the main landholders in the Fairbanks Mining Division, Alaska's most prolific gold mining camp.
The company's properties are located within 6 miles of Kinross Gold's FORT KNOX and TRUE
NORTH gold deposits. Fort Knox, Alaska's largest open-pit mine, has been in operation for many years producing over 1,000 ounces of gold per day at an average grade just under 0.03 oz per ton.
The GIL joint-venture project (80% Kinross / 20% Teryl) is the company's most advanced property, and based on drill results (10 million tons grading 0.04 ounces per ton gold for 400,000 ounces) will deliver higher-grade gold for the "ore-hungry" Fort Knox mill.
Properties/Projects
- Teryl is one of the main property owners in the Fairbanks Mining Division around and adjacent to Kinross' producing Fort Knox Mine and True North property.
- Teryl's properties include the Gil, West Ridge, Fish Creek and Stepovich properties.
- Teryl's Gil property (20% Teryl, 80% Kinross) is located adjacent to the Fort Knox mine.
- To date, Teryl has spent $ 1.6 million on exploration that has defined a resource of 400,000 ounces of gold (10 million tons grading 0.04 ounces per ton gold).
- The main zone that contains this resource ranges in thickness up to 80 feet and has been followed for over 2,500 feet. The zone remains open along strike and at depth.
- The West Ridge property (100% owned by Teryl) contains two gold zones ("East" and "West" anomalies). Both anomalies contain elevated gold in soil, the West mineralization being associated with high levels of arsenic and antimony similar to the chemistry of gold mineralization found at Kinross' True North deposit (616,000 ounces of gold at 0.046 ounces per ton gold). To date, Teryl and Kinross have spent about $ 350,000 on the exploration of the West Ridge property.
- The Fish Creek Property (50% owned by Teryl by option) is located adjacent to the north of the company's Gil Property. Elevated gold values, identified in an auger drill program, suggest the property may contain an extension of the mineralized zone found on the Gil property.
- The Stepovich property is owned 100% by Kinross subject to a 10% net profit interest owned by Teryl. The property is adjacent to the Fort Knox gold deposit and could be readily available for production to feed the Fort Knox Mill.
- The company believes its properties in Alaska could contain significant deposits of ore similar to that found at Fort Knox and True North. These deposits, once defined, could be readily put into production and processed at Kinross' Fort Knox mill.
Recent News: KINROSS GOLD/TERYL RESOURCES: ADDITIONAL PHASE II DRILL RESULTS - GIL PROJECT, ALASKA. Drilling Results Intercept 205 Feet of Significant Gold Mineralization in Three Separate Zones in Hole #465
Teryl Resources Corp. has announced further drill results from the 2003 second phase exploration program, which intercepted 220 feet of significant gold mineralization on Hole # GVC03-465, and gold assays in ounces per ton (opt) as follows;
The first phase drill program increased the geologic understanding of the Main Gil gold deposit to
provide a more accurate gold distribution deposit model and extended the strike length of the Main Gil zone to almost 3,000 feet.
Phase 2 drilling has recently been completed, bringing 2003 drilling totals to 27,590 feet of reverse circulation drilling in 127 holes and 7,917 feet of diamond core drilling in 28 holes. Initial results of this second phase of drilling continued to advance the project (see News Release, January 8, 2004).
Following are new assays from a portion of the second phase drilling program on the Main Gil deposit. Analytical results from the final three drill holes will be published when available. A drill hole location map for these holes is attached for reference.
The company's consultant, Curt Freeman, of Avalon Development Corporation states "Each drill
program is incrementally improving the confidence in the Gil resources."
Fundamental Considerations
Teryl's goals are to develop the GIL project to production with Kinross, the world's 7th largest gold producer, and to uncover further gold deposits in the Fairbanks district.
Among Teryl's other prospective holdings is its 100%-owned West Ridge property. Located just
2 miles south of the True North deposit, the summer 2003 field exploration program outlined two
anomalous gold zones that will be further explored through trenching and drilling.
By year-end 2004, Teryl's objectives are to have proven gold reserves on the Gil Project and a favorable production decision. Teryl also aims to discover an economic gold deposit on West Ridge.
We expect more positive results during the coming weeks and months, which will further lift the share price of Teryl.
Technical Considerations
The gold price touched $ 430 at the beginning of January and has since been consolidating the sharp advance. This consolidation may well continue for a while but we expect to see prices in excess of $ 450 during the course of this year.
The share price of Teryl has staged an important break-out of the trading range which has been in place for many years. This is significant and points towards much higher valuations during the course of the year.
Teryl's drill results are looking better with every program.
Our recommendation: BUY!
Peter Zihlmann
www.pzim.com
investment@pzim.com
forex@pzim.com
January 31, 2004
You may also consult the research reports at
www.terylresources.com/researchreport.html
Disclosure: The author has not been paid to write this article, nor has he
received any other inducement to do so. The author is a shareholder in the
company and will benefit from any increase in the company's share price.
Disclaimer: The author's objective in writing this article is to invoke an
interest on the part of potential investors in this stock to the point where
they are encouraged to conduct their own further diligent research. Neither
the information, nor the opinions expressed should be construed as a
solicitation to buy or sell this stock. Investors are recommended to obtain
the advice of a qualified investment advisor before entering into any transactions
in the stock.
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